first half fy20 results presentation half...nta per unit 4 $2.29, up by 0.9% gearing 3 34.2%, up by...
TRANSCRIPT
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FIRST HALF FY20 RESULTS PRESENTATION3 February 2020
Shell Cove, NSW
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AGENDA1. OVERVIEW OF FIRST HALF FY20 RESULTS
2. FINANCIAL PERFORMANCE
3. OPERATIONAL PERFORMANCE
4. GROWTH INITIATIVES
5. KEY PRIORITIES AND OUTLOOK
6. QUESTIONS
7. APPENDICES
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OVERVIEW OF FIRST HALFFY20 RESULTS
1
3
Anthony MellowesChief Executive Officer
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FIRST HALF FY20 HIGHLIGHTS
4
FINANCIALPERFORMANCE
FFO per unit 1
8.44 cpu, up by 4.2%
Distribution per unit 1,2
7.50 cpu, up by 3.4%
Funds from operations (FFO) 1
$78.5m, up by 19.1%
ACTIVE PORTFOLIO MANAGEMENT
Portfolio occupancy 5
98.3%
Acquisitions 7
$78.4m
Portfolio weighted average cap rate 6
6.46%
Specialty vacancy 5
4.8%
CAPITAL MANAGEMENT
NTA per unit 4
$2.29, up by 0.9%
Gearing 3
34.2%, up by 1.4%
Weighted cost of debt 5
3.4% pa
Weighted average debt maturity 5
5.6 yrs
1. For the six months ended 31 December 2019 vs six months ended 31 December 2018 2. Distribution of 7.50 cpu in respect of the six months ended 31 December 2019 was paid on 29 January 2020. “cpu” stands for Cents Per Unit3. As at 31 December 2019, compared to 30 June 2019. Gearing is calculated as Finance debt, net of cash (with USD denominated debt recorded as the hedged AUD amount) divided by total tangible assets (net
of cash and derivatives). Target gearing range is 30% - 40%. Gearing is 32.8% when adjusted for the sale of Cowes, SURF 1 return of capital and underwritten DRP in January 20204. As at 31 December, compared to 30 June 20195. As at 31 December 20196. As at 31 December 2019. Weighted average capitalisation rate as at 30 June 2019 was 6.48%7. During the six month period we acquired Warner Marketplace for $78.4 million (excluding transaction costs)
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KEY ACHIEVEMENTSSupermarket anchored convenience centres continue to be resilient
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• Our tenants are performing well– Supermarket and discount department store MAT sales growth has continued to improve over the last six months and
turnover rental growth is increasing– Specialty MAT sales growth has improved, sales productivity has increased, specialty vacancy has reduced and
occupancy cost is now 9.8%• Against a backdrop of a softening in the broader retail market, our strategy has continued to be to:
– Improve tenancy mix with a bias toward non-discretionary categories– Maintain high retention rates on renewals; and– Reduce specialty vacancy by focussing on difficult long term vacancies
• This strategy will ensure we have sustainable tenants paying sustainable rents, and ultimately support our strategy of generating defensive, resilient cash flows to support secure and growing long term distributions to our unitholders
– In the last six months, while average leasing spreads were negative and average incentives were higher, we have achieved a sustainable improvement in occupancy and tenancy mix across the portfolio
• Acquisition of Warner Marketplace, a Woolworths and Aldi-anchored convenience centre in Brisbane QLD, for $78.4m (excluding transaction costs) in December 2019
• Completion of Shell Cove Stage 3 development (5 additional specialty shops of 396sqm in total) for $4.8m in December 2019• Agreed to sell Cowes VIC for $21.5m in December 2019 (10% above June 2019 book value), with settlement expected in
February 2020• Completed the sale process for the SURF 1 properties for $69.3m, 1.3% above June 2019 book value. Proceeds to be
distributed to SURF 1 unitholders during 2H FY20
• Balance sheet remains in a strong position– Gearing of 34.2% (within our target range). Gearing is 32.8% when adjusted for the sale of Cowes, SURF 1 return of
capital and underwritten DRP in January 2020– Weighted average cost of debt is currently 3.4%, weighted average term to maturity of debt is 5.6 years, 65.2% of
drawn debt either fixed or hedged– Cash and undrawn facilities of $145.8m
• 1H FY20 FFO per unit of 8.44 cpu represents growth of 4.2% on the same period last year• 1H FY20 Distribution of 7.50 cpu represents growth of 3.4% on the same period last year
EARNINGS GROWTH DELIVERED
OPTIMISING THE CORE BUSINESS
GROWTH OPPORTUNITIES
CAPITAL MANAGEMENT
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FINANCIAL PERFORMANCE
2Mark FlemingChief Financial Officer
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PROFIT & LOSSFor the six months ended 31 December 2019
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• Net property income:– Gross property income increase primarily due to acquisitions– Property expenses slightly increased as a percentage of gross property income
due to larger average centre size and growth of in-house leasing team
• Comparable NOI1 up by 1.6% on the prior year, slightly lower than the prior year growth rate due to execution of strategy in a softening retail market
• Distribution income relates to our CQR unitholding. In 1H FY19 we owned 15.5m CQR units. In 2H FY19 we sold 8.7m units. As at 31 December 2019 our residual CQR unitholding is 6.8m units
• Funds management income includes $0.7m SURF 1 disposal fee
• Corporate costs increase primarily due to increase in D&O insurance
• Fair value adjustments:– Investment properties: fair value gain primarily due to increase in the value of the
properties acquired from VCX in October 2018– Minimal movements in the value of derivatives and foreign exchange due to
relatively stable interest rate outlook and currency movements– Share of net profit from associates relates to SURF 1, 2 & 3 co-investment stakes
• Net interest expense:– Average debt drawn (vs December 2018) increased by ~$110m due to
acquisitions and developments largely offset by decreased interest rates, with weighted average cost of debt now down to 3.4% (vs December 2018 of 3.8%)
1. Comparable NOI growth is the net operating income growth from comparable centres excluding acquisitions, disposals & developments, and excluding the income from, funds management income, distribution income and non-cash items such as straight lining and amortisation of incentives
2. For the purpose of this ratio, gross property income excludes straight lining and amortisation of incentives3. In prior periods, recoveries and recharge revenue was included in anchor retail income, specialty rental income and other income (due to change in AASB 15
Revenue from Contracts with Customers)
$m 31 Dec 2019
31 Dec 2018 % Change
Anchor rental income3 63.5 56.0 13.4%Specialty rental income3 64.4 53.7 19.9%Recoveries and recharge revenue3 17.4 13.4 29.9%Other income3 5.2 2.6 100.0%Straight lining and amortisation of incentives (4.7) (4.1) 14.6%Gross property income 145.8 121.6 19.9%Property expenses (46.6) (38.4) 21.4%Property expenses / Gross property income (%)2 31.0% 30.5% 0.5%Net property income 99.2 83.2 19.2%Distribution income from CQR 1.0 2.2 (54.5%)Funds management income from SURF funds 1.3 1.3 -%Net operating income 101.5 86.7 17.1%Corporate costs (6.8) (6.5) 4.6%Fair value of investment properties 13.6 (28.0) nmFair value of derivatives 0.7 33.9 (97.9)%Unrealised foreign exchange loss 0.5 (25.8) nmShare of net profit from associates 0.4 0.6 (33.3)%Transaction fees - (2.2) nmEBIT 109.9 58.7 87.2%Net interest expense (19.3) (19.0) 1.6%Tax expense (0.4) (0.4) -%Net profit after tax 90.2 39.3 129.5%
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FUNDS FROM OPERATIONSFor the six months ended 31 December 2019• Funds From Operations (“FFO”) of $78.5m is up by 19.1% on the same period
last year, primarily due to acquisitions completed during 1HFY19– Non-cash and one-off items have been excluded from FFO
• Adjusted FFO (AFFO) of $70.1m is up by 15.7% on the same period last year– New lease incentives have increased due to higher average incentives and
increased deal volume
• Weighted average units on issue increased primarily due to distribution reinvestment plan (5.3m units in August 2019 and 10.6m units in January 2019), institutional placement (113.1m units in October 2018) and unit purchase plan (47.9m units in November 2018)
• Distribution of 7.50 cpu represents <100% of AFFO– Estimated tax deferred component decreased to 22% which is in line with
our expected normalised level. FY19 was higher due to deductions associated with the September 2018 USPP
• EPU and DPU increased by 4.2% and 3.4% respectively versus the same period last year
$m 31 Dec 2019
31 Dec 2018 % Change
Net profit after tax (statutory) 90.2 39.3 129.5%
Adjustment for non cash itemsReverse: Straight lining & amortisation 4.7 4.2 11.9%Reverse: Fair value adjustments- Investment properties (13.6) 28.0 (148.6)%- Derivatives (0.7) (33.9) (97.9)%- Foreign exchange (0.5) 25.8 (101.9)%
Other adjustments- Other income (2.1) - nm- Net unrealised (profit)/loss from SURF funds 0.5 0.3 66.7%- Transaction fees - 2.2 nmFFO 78.5 65.9 19.1%
Number of units (weighted average)(m) 929.8 813.7 14.3%FFO per unit (cents) ("EPU") 8.44 8.10 4.2%Distribution ($m) 69.9 66.3 5.4%Distribution per unit (cents) ("DPU") 7.50 7.25 3.4%Payout ratio (%) 89% 90% (1.0)%Estimated tax deferred ratio (%) 22% 42% (20.0)%
Less: Maintenance capex (1.9) (2.2) (13.6)%Less: Leasing costs and fitout incentives (6.5) (3.1) 109.7%AFFO 70.1 60.6 15.7%Distribution / AFFO (%) 100% 109% (9.0)%
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BALANCE SHEETAs at 31 December 2019
1. Full year FY20 forecast2. MER stands for “Management Expense Ratio” and is calculated as Corporate Costs divided by Assets Under Management at year end (including SURF 1,
SURF 2 and SURF 3). Bps stands for basis points.
• Value of investment properties increased from $3,147.0m to $3,232.8m, primarily due to:
– Acquisition of Warner Marketplace for $78.4m, completion of Shell Cove Stage 3 development for $4.8m, and partially offset by disposal of Cowes property for $21.5m (June 2019 book value of $19.6m)
– Valuation uplift on like-for-like properties. The properties acquired from VCX increased by $17.8m to $594.2m vs the acquisition price of $573.0m
– Portfolio weighted average capitalisation rate is now 6.46% (sub-regionals 6.74% and neighbourhoods 6.36%) vs 6.48% in June 2019
– Portfolio investment property valuation implies $1,584 per square metre of aggregate land area
• Investment in CQR of 6.8m units held at its closing price on 31 December 2019 of $4.27 per unit
• Other assets includes derivative financial instruments with a mark-to-market valuation of $127.2m, SURF 1, 2 & 3 co-investment of $18.0m, receivables of $39.1m (including $8.0 m receivable due to SURF 1 capital return in January 2020) and other assets of $19.0m
• NTA per unit increased by 0.9% to $2.29, due to investment property uplift mostly associated with the properties acquired from VCX in October 2018
• SURF assets under management and co-investment includes $115.0m of properties in SURF 2 and 3, and $38.6m of cash in SURF 1 (to be distributed to SURF 1 unitholders in the current calendar year). Remainder of $2.9m includes receivables and other assets of SURF 1, 2, and 3
• MER increased to 39bps due to increased corporate costs primarily due to increase in D&O insurance
$m 31 Dec 2019 30 June 2019 % ChangeCash 3.8 4.2 (9.5)%
Assets - held for sale 21.5 - nm
Investment properties 3,232.8 3,147.0 2.7%
Investment in CQR 28.9 29.6 (2.4)%
Other assets 203.3 191.4 6.2%
Total assets 3,490.3 3,372.2 3.5%Debt 1,222.2 1,137.5 7.4%
Accrued distribution 69.9 69.0 1.3%
Other liabilities 60.7 61.8 (1.8)%
Total liabilities 1,352.8 1,268.3 6.7%Net tangible assets (NTA) 2,137.5 2,103.9 1.6%Number of units (period-end)(m) 931.8 925.6 0.7%
NTA per unit ($) 2.29 2.27 0.9%Corporate costs (14.0)1 (13.1) 6.9%
External funds under management- SURF 1, 2 & 3 assets under management 156.5 186.4 (16.0)%
- Less: SURF 1, 2 & 3 co-investment (18.0) (26.5) (32.1)%
Assets under management 3,628.8 3,532.1 2.7%MER2 (%) 0.39% 0.37% 0.02%
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1. Facility limit is the bank debt of $450.0m (including bilateral bank facility limits of $350.0m plus $100.0m syndicated non revolving facility) plus USPP A$ denominated facility of $50.0m plus the USPP US$ denominated facilities at A$357.1m (being made up of USPP2014 US$ denominated facility at A$159.8m and the USPP2018 US$ denominated facility at A$197.3 (both being the AUD amount received and hedged in AUD)), plus the A$ MTN issuance of $450m.
2. Drawn debt (net of cash) of $1,150.3 is made up of: statutory debt of $1,222.2m less $69.7m (being the revaluation of the USPP US$ denominated debt from statutory value of $426.8m (using the prevailing December 2019 spot exchange rate) to restate the USPP to its hedged value of A$357.1m (refer note 1 above) plus unamortised debt fees and MTN discount of $1.6m less $3.8m cash
DEBT AND CAPITAL MANAGEMENTAs at 31 December 2019
Debt Facilities Expiry Profile ($m)
• Gearing of 34.2% is within target range of 30% to 40%. Our preference is for gearing to remain below 35% at this point in the cycle
– Look through gearing (including CQR and SURF investments) is 34.7%– Gearing is 32.8% when adjusted for the sale of Cowes, SURF 1 return of capital
and underwritten DRP in January 2020
• Key movements in debt during the period:– Bank debt: we increased $50.0m bilateral bank debt facilities expiring in FY23
• The earliest debt expiry is the A$MTN of $225.0m in April 2021. It is expected that the MTN will be initially repaid mainly from existing undrawn debt and cash of $145.8m together with funds raised from the sale of Cowes for $21.5m, underwriting the distribution paid in January 2020 (raised $27.9m) and other activities
• Weighted cost of debt reduced from 3.6% to 3.4% due to declining BBSW rates. Average debt maturity has decreased to 5.6 years as there have been no changes in the debt profile since June 2019. Average fixed maturity has decreased to 4.3 years as there have been no changes in the hedging profile since June 2019
• We are well within debt covenant limits of less than 50% gearing and interest cover ratio (ICR) greater than 2.0x
31 Dec 2019 30 June 2019Facility limit ($’m) 1 1,307.1 1,257.1Drawn debt (net of cash) ($’m) 2 1,150.3 1,064.9Gearing (%) 3 34.2 32.8% debt fixed or hedged 65.2 70.4Weighted average cost of debt (%) 3.4 3.6Average debt maturity (yrs) 5.6 6.1Average fixed / hedged debt maturity (yrs) 4.3 4.8Interest cover ratio4 4.6x 4.3x
10
0
50
100
150
200
250
300
FY20 FY21 FY23 FY24 FY26 FY28 FY29 FY30 FY32 FY34
Bank debt undrawnBank debt drawnMTNUSPP
65.892.1
39.4
106.5 103.3
133.0
225.0
142.0
75.0
225.0
100.0
3. Gearing calculated as drawn debt (net of cash) of $1,150.3m (refer note 2 above), divided by total tangible assets (net of cash and derivatives) being total assets of $3,490.3m less cash of $3.8m less derivative mark-to-market of $127.2 = $3,359.3m
4. Interest cover ratio is calculated as calendar year Group EBIT $219.9m less unrealised and other excluded gains and losses of $38.2m, divided by calendar year net interest expense of $41.1m
5. Cash and undrawn facilities is made up of facility limit of $1,307.1m less drawn debt net of cash of $1,150.3 less $11.0m of debt facilities used for bank guarantees
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OPERATIONAL PERFORMANCE
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11
Anthony MellowesChief Executive Officer
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PORTFOLIO OVERVIEWWeighting towards food, health and retail services (non-discretionary)
1. Annualised gross rent excluding vacancy and percentage rent2. Mini Majors represent 12% of annualised specialty gross rent. Mini major tenants have been split across the relevant categories3. Woolworths includes Endeavour Drinks (1.6% of gross rent)4. Wesfarmers includes Kmart 2.1%, Bunnings 0.5% and Target 0.4%5. Other majors includes Aldi, Farmer Jacks and Grand Cinemas
As at 31 Dec 2019 Number of centres
Number of specialties
GLA (sqm)
Site Area(sqm)
Occupancy (% GLA)
Value ($m)
WALE (yrs)
Weighted average cap rate (%)
Neighbourhood 75 1,292 465,521 1,495,916 98.3% 2,384.7 7.5 6.36%
Sub-regional 10 516 208,868 545,090 98.4% 848.1 7.8 6.74%
85 1,808 674,389 2,041,006 98.3% 3,232.8 7.6 6.46%
Asset held for sale 1 14 4,820 14,160 98.0% 21.5 10.3
86 1,822 679,209 2,055,166 98.3% 7.6 6.46%
Tenants by Category (by gross rent)1 Geographic Diversification (by value)Specialty Tenants by Category (by gross rent)1,2
Woolworths3 28%
Big W 5%
Coles 11%
Wesfarmers4 3%Other major5 1%
Specialties 52%
Fresh Food/Food Catering/Liquor 32%
Services 21%Pharmacy & Health
Care 20%
Apparel 8%
Discount Variety 6%
Petrol 2%
Other Retail 11%
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NSW24%
QLD25%
SA6%
TAS11%
VIC19%
WA15%
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PORTFOLIO OCCUPANCYSpecialty vacancy has reduced
98.6% 98.4% 98.4% 98.2% 98.3%
June 2016 June 2017 June 2018 June 2019 Dec 2019
5.5%
12.0% 10.9% 10.0% 9.1%7.2%
4.5% 4.2%7.3%
29.3%
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29and
Beyond
• Strategic focus on remixing toward non-discretionary categories, reducing long term vacancies and maintaining the retention rate on existing tenant renewals
• Total portfolio occupancy has improved to 98.3% of GLA– Specialty vacancy has reduced to 4.8% (from 5.3% as at June 2019), within
target range of 3-5%– Long term stability of portfolio occupancy illustrates the resilience of the portfolio– Refer to slide 31 for a comparison between existing and FY19 acquisition
centres
• Specialty tenant holdover on total portfolio is 0.9% (down from 1.0% at June 2019)
• Anchor tenant expiries in 2020:– The Markets Coles in October 2020: 2 x 5-year options (10 years in total) have
been exercised, 3 x 5yr options remaining– West End Plaza Coles in November 2020: we are finalising terms for new lease– West End Plaza Kmart in November 2020: we are finalising terms for new lease
• Continued active management of lease expiry profile. Around 10% overall lease expiry per annum is consistent with c.50% of income from specialty tenants with 5-year leases
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Portfolio Occupancy (% of GLA)
Overall Lease Expiry (% of Gross Rent)
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0.60 0.65 0.70
1.10
1H FY16 1H FY17 1H FY18 1H FY19 1H FY2015 Anchors 16 Anchors 20 Anchors 34 Anchors 34 Anchors
Crystallised into Base RentTotal Portfolio
1.30
1.10
0.20
Total Portfolio As at 31 Dec 2019
As at 30 June 2019
Supermarkets 2.6% 2.0%
DDS 3.4% 2.2%
Mini Majors (1.0%) (3.1)%
Specialties 2.3% 1.8%
Total 2.6% 1.9%
SALES GROWTH AND TURNOVER RENTSales growth in our centres is increasing
Turnover Rent ($m)
Comparable Store MAT1 Sales Growth by Category (%)
1. Moving annual turnover sales growth measures the growth in sales over the last 12 months compared to the previous 12 month period
• Supermarket portfolio MAT1 sales growth has improved to 2.6% (June 2019: 2.0%)– Both Coles and Woolworths showing an increased rate of growth
• Discount Department Store (DDS) portfolio MAT sales growth has accelerated to 3.4% (June 2019: 2.2%)
– Big W continues to perform positively with sales steadily increasing
• Mini Majors portfolio MAT sales appear to be stabilising– Discount variety category continues to be impacted and the apparel
category continues to underperform
• Specialty portfolio MAT sales has increased to 2.3% (June 2019: 1.8%)– Non-discretionary categories MAT growth was 3.1%, continuing to outperform
discretionary categories at 0.8%– Discretionary categories such as apparel and leisure are continuing to feel the
pressures from competition and online– Our core categories of Food/Liquor at 2.7% (June 2019: 2.2%), Retail Services
at 5.1% (June 2019: 3.6%) and Pharmacy at 3.0% (June 2019: 1.2%) continue to perform strongly
– Neighbourhood centres MAT growth was 2.8%, continuing to outperform our Sub Regional centres which grew by 1.5%
• Turnover rent continues to increase:– 34 anchor tenants paying turnover rent as at 31 December 2019 (30
supermarkets, 2 Kmart's and 2 Dan Murphy’s) – represents 30% of portfolio anchors paying turnover rent
– Another 14 supermarkets are within 10% of their turnover thresholds– 3 anchor tenant turnover rents crystallised to base rent during the year
• The sales numbers on this slide are for the total portfolio. Please refer to slide 31 for a breakdown between existing and acquired centres
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SPECIALTY KEY METRICS Executing our strategy in a challenging retail market
1. Sales growth, occupancy cost and sales productivity metrics only include sales reporting tenants trading over 24 months
Specialty Lease Composition (as at 31 December 2019)
National / Regional,
61%Local, 39%
Fixed, 85%
CPI, 13%
Other, 2%Annual Increase Mechanism Tenant Type
Total Portfolio 31 December 2019 30 June 2019
Comparable sales MAT growth (%)1 2.3% 1.8%
Average specialty occupancy cost (%)1 9.8% 10.1%Average specialty gross rent per square metre $772 $772
Specialty sales productivity ($ per sqm)1 $8,134 $8,010
Renewals 6 months to 31 December 2019
12 months to 30 June 2019
Number 135 215
Retention (%) 78% 77%
GLA (sqm) 19,134 26,455
Average uplift (%) (1.7)% (1.7)%
Incentive (months) 0.3 -
New Leases 6 months to 31 December 2019
12 months to 30 June 2019
Number 86 87
GLA (sqm) 12,240 12,200
Average Uplift (%) (3.9)% 4.9%
Incentive (months) 15.9 11.0
Specialty Tenant Metrics• Strong metrics for specialty tenants:
– Sales growth increasing to 2.3% (June 2019: 1.8%)– Sales productivity increased to $8,134 psm (June 2019: $8,010 psm)– Our rents remain the lowest in the sector at $772 psm– Occupancy cost reduced to 9.8% (June 2019: 10.1%)
• Against a backdrop of a softening in the broader retail market, our strategy has been:– Maintain a high retention rate on renewals: up to 78% for the six months to
December 2019 (compared to 77% for the 12 months to June 2019)– Reduce specialty vacancy by doing a significantly increased volume of deals
on difficult long term vacancies: 86 new deals done in six months to December 2019 (vs 87 in the 12 months to June 2019)
– Remix toward non-discretionary categories
• While average leasing spreads were negative and average incentives were higher, we have achieved a sustainable improvement in occupancy and tenancy mix across the portfolio. We are still maintaining 3%-4% annual fixed increases for 85% of specialty tenants, and we remain on track to achieve FY20 comparable NOI growth forecast of 1.6%
• The numbers on this slide are for the total portfolio. Please refer to slide 32 for a breakdown between existing and acquired centres
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GROWTH INITIATIVES
4
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Anthony MellowesChief Executive Officer
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PORTFOLIO MANAGEMENTOne acquisition, one completed development and one disposal in the six months to 31 December 2019
DISPOSAL
Cowes, VIC: Contracts were exchanged on 3 December 2019 for a sale price of $21.5m, reflecting a $1.9m (9.7%) uplift on June 2019 book value (yield of 6.85%)
Warner Marketplace (Warner, QLD)
• Acquisition completed in Dec 2019 for $78.4m (5.92% implied fully let yield excluding balance of land)
• Anchored by Woolworths and Aldi supermarkets with 37 specialty tenancies, 2 Kiosks, 2 ATM’s and 5 freestanding tenancies
• % of income from Anchors: 34%
• Overall WALE: 6.4 years
• Occupancy at acquisition: 96%
• Built: 2001; Expanded: 2014
Shell Cove – Stage 3 (Shellharbour,
NSW)
• Stage 3 refers to a main street strip of retail comprising five tenancies situated directly across from the SCP owned Shell Cove Neighbourhood centre
• Development completed in Dec 2019 for total consideration of $4.8m (6.25% implied fully let yield)
• Asset will form part of the existing Shell Cove Neighbourhood Centre
• Two year rental guarantee for any vacancy
ACQUISITION
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DEVELOPMENT
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CONVENIENCE BASED CENTRE LANDSCAPE
• There are approximately 1,200 Coles and Woolworths anchored neighbourhood and sub regional centres in Australia
• SCP is the largest owner (by number) of neighbourhood and sub regional centres in Australia. SCP has an opportunity to continue to consolidate this fragmented segment by utilising its management capability, industry knowledge and funding ability to source and execute acquisition opportunities from private and corporate owners
• Since listing SCP has completed the acquisition of 50 neighbourhood and sub regional centres for over $1.7b and has divested 31 freestanding and neighbourhood centres for over $500m
RECENT TRANSACTIONS
• During the half year ended 31 December 2019:
– 17 neighbourhood centres changed hands for total consideration of ~$700m
– 1 sub regional centre changed hands for total consideration of ~$100m
• More institutional sellers, while syndicates and privates remain active on the buy side for neighbourhood centres
• SCP acquired one property over the half year, making up approximately 10% of total known transactions over the period
CONVENIENCE BASED CENTRESFragmented ownership provides acquisition opportunities
Source: Management estimates
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Syndicates, Funds & Other
Institutions
Private
SCP
CQRISPT VCX
Ownership of Convenience Based Centres(number of centres)
Indicative
Institutions19%
Syndicates & Funds
17%
Private54%
SCP10%
HY20 Buyers(by value)
Institutions51%
Syndicates & Funds
4%
Private45%
HY20 Sellers(by value)
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INDICATIVE DEVELOPMENT PIPELINEOver $115m of development opportunities identified at 31 of our centres over the next 5 years1
1. The exact timing of future developments, expansions and improvements are subject to prevailing market conditions and regulatory approvals2. The $10m acquisition cost for the additional land at Greenbank occurring in December 2020 has been excluded from the Indicative
Development Pipeline
Estimated Capital Investment (A$m)
DEVELOPMENT TYPE CENTRE(S)1HY20
Actuals 2HY20 FY212 FY22 FY23 FY24
Centre expansionsShell Cove, Epping North, Belmont, North Orange, Warner Marketplace, Wyndham Vale, Northgate, Central Highlands, Gladstone, Greenbank, Jimboomba, Mackay, Ocean Grove 5.5 3.0 11.7 18.3 20.1 21.7
Supermarket expansions Treendale, West Dubbo - - - 0.5 4.0 -
Centre improvements
Burnie, Ocean Grove, Oxenford, The Markets, New Town Plaza, West End Plaza, Riverside, Shoreline, The Gateway, Whitsunday SC, Sturt Mall, Meadow Mews, Griffin Plaza, Warnbro, Sugarworld, Wonthaggi, Northgate, Kingston
0.7 9.9 14.2 6.3 2.3 2.3
Preliminary & Defensive Various - 0.3 0.3 0.3 0.3 0.3
Total 6.2 13.2 26.2 25.4 26.7 24.3
Shell Cove Stage 3 completed in 1H FY20. The major projects in 2H FY20 are: The Markets, Epping North & Oxenford
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FUNDS MANAGEMENT BUSINESS – AUM$156.5M Potential to deliver additional earnings growth in the future
1. SCA may defer fees, or rebate a portion of its fees to wholesale clients, at its discretion
Moama Marketplace, NSW (SURF 3)
Warrnambool Target, VIC (SURF 3)
Woodford Woolworths, QLD (SURF 3)
Swansea Woolworths, NSW (SURF 3)
• First fund “SURF 1” was launched in October 2015, and has successfully sold the five assets, consistent with 5-year term set out in the original PDS
– Achieved sales price for the five assets of $69.3m (vs original cost of $60.9m and June 2019 book value of $68.4m)
– IRR expected to be in excess of 10%, with potential performance fee to be realised once full proceeds are distributed to unitholders
– The wind-up process will be completed during calendar year 2020
• Second and third funds performing in line with expectations– “SURF 2” launched in June 2017– “SURF 3” launched in July 2018
• Fee structure for all funds is the same1
– Establishment Fee: 1.5% of total asset value– Management Fees: 0.7% of total asset value per annum– Disposal Fee: 1.0% of assets disposed– Performance Fee: if the equity IRR exceeds 10%, SCP will receive 20% of the
outperformance
• No new funds are forecast for FY20. We will continue to monitor the retail and institutional market appetite for new product
• The funds management business will continue to allow SCP to recycle non-core assets, and utilise its expertise and platform to earn management fees in the future (subject to market conditions)
20Woolworths and Big W, Katoomba (SURF 2) Dan Murphy’s, Mittagong (SURF 2)
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KEY PRIORITIES AND OUTLOOK
5
21
Anthony Mellowes and Mark FlemingChief Executive Officer & Chief Financial Officer
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CORE STRATEGY UNCHANGEDDefensive, resilient cashflows to support secure and growing long term distributions to our unitholders
FOCUS ON CONVENIENCE-BASED RETAIL CENTRES
WEIGHTED TO NON-DISCRETIONARY
RETAIL SEGMENTS
LONG LEASES TO QUALITY ANCHOR TENANTS
APPROPRIATE CAPITAL STRUCTURE
GROWTH OPPORTUNITIES
22
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SUSTAINABILITY
23
We continue to focus on long-term sustainable performance
Our Sustainability Objectives
ENVIRONMENTALLY EFFICIENT CENTRES
RESPONSIBLE INVESTMENT
STRONGER COMMUNITIES
Strengthen the relationships between our shopping centres and their local communities and help improve the wellbeing and prosperity of those communities
Reduce the environmental footprint of our shopping centres, particularly greenhouse gas emissions through reducing energy consumption
Manage environmental, social and governance (ESG) risks that are material to investment value and communicate our performance on this
1
2
3
SCP remains on track to deliver our sustainability targets with dedicated resourcing and focus on the 3 pillars of our strategy
SCP achievements during this period:
Stronger Communities
• Planning and delivery on our commitment to roll out stronger communities campaigns across all our centres in FY20
Environmentally Efficient Centres
• Set up a specific sustainability development capex project to drive investment in sustainability initiatives that generate acceptable returns
– Solar panels operational across 5 centres. Expansion in capacity of renewable energy for both our centres and our tenants
– Installation of a further 2 Building Automation Systems for management of air conditioning, lighting and energy demand
– Ongoing discussions and trials for the onsite processing of food organics waste. Exploring how we can efficiently implement waste diversion practices across the portfolio for specialty tenants and common mall area organic waste
Responsible Investment
• Creation of a capital investment fund targeting initiatives that achieve the greatest ESG outcomes and returns
• Climate risk assessment across the portfolio underway
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POTENTIAL EARNINGS GROWTH TRENDS
24
Continued solid earnings growth expected over time
Anchor Rental Growth
Specialty and OtherRental Growth
Expenses
Property Development
Acquisitions
Other Opportunities
Indicative Contribution to FFO Growth Rate (% pa)– medium to longer term –Description and Assumptions
• Anchor rental income represents about 50% of overall gross property income• Once turnover thresholds are met, rent will grow in proportion to Anchors’ sales growth
• Specialty rental income represents about 50% of overall gross property income• Specialty leases generally have contracted growth of 3-4% pa
• Property Expenses and Corporate Costs expected to grow at same percentage rate as rental income• Interest expense is continuing to be actively managed
• Selective extensions and refurbishments of our existing centres• We have identified over $115m of development opportunities over the next 5 years
• Selective acquisitions will continue to be made in the fragmented convenience based shopping centre segment
• Funds management business continues to be capital light
CORE
BUS
INES
SGR
OWTH
INIT
IATI
VES
0 - 1%
1 - 2%
0%
1% +
2 - 4% +
Indicative Comparable NOI Growth (%) 1 - 3%
Indicative FFO Growth (%)
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KEY PRIORITIES AND OUTLOOKContinue to deliver on strategy in FY20
OPTIMISING THE CORE BUSINESS
• Completion of remixing project for centres acquired in FY19• Leasing focused on sustainable tenants at sustainable rents - maintain high retention rates on renewals and continue to
reduce specialty vacancy• Explore additional “other income” opportunities• Manage expenses both at centre and corporate levels while maintaining appropriate standards within our centres
GROWTH OPPORTUNITIES
• Continue to explore value-accretive acquisition opportunities consistent with our strategy and investment criteria• Progress our identified development pipeline• New funds management opportunities as market conditions allow
CAPITAL MANAGEMENT• Continue to actively manage our balance sheet to maintain diversified funding sources with long weighted average debt
expiry and a low cost of capital consistent with our risk profile• Gearing to remain below 35% at this point in the cycle
EARNINGS GUIDANCE • FY20 FFO per unit (“EPU”) guidance increased from 16.7 cpu to 16.9 cpu (3.5% above FY19) and DPU guidance maintained at 15.10 cpu (2.7% above FY19)
25
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QUESTIONS
6
26
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APPENDICES
27
7
slideslide 28
We have increased guidance to 16.90 cpuFY20 FFO PER UNIT GUIDANCE
Warner Marketplace acquisition, Shell Cove Stage 3 development,
Cowes divestment, SURF 1 performance fee and assumes
continue to hold remaining CQR units
Increase in corporate costs due to D&O insurance and additional tax on SURF 1
performance fee
Increased volume of debt offset by lower cost of debt due to
decline of BBSW since August 2019 to December 2019
Weighted average units on issue increased due to
January 2020 DRP underwrite
0.32
-
( 0.06 ) ( 0.02 ) ( 0.04 )16.70 16.90
FY20 Guidance Aug 2019 Growth Initiatives Corporate & Tax Interest Expense Units on Issue FY20 Guidance Feb 2020
slideslide 29
WALE Years31 Dec 2019 By Gross Rent By GLA
Portfolio WALE 6.5 7.6
Anchor WALE 10.4 9.9
PORTFOLIO LEASE EXPIRY PROFILE
• 48% of gross rent is generated by anchor tenants (Woolworths 33%, Coles 11%, Wesfarmers 3% and Other majors 1% on a fully leased basis), with an Anchor WALE of 9.9 years
• Overall, a 7.6 year portfolio WALE combined with investment grade tenants and non-discretionary retail categories provides a higher degree of income predictability
• 135 specialty renewals completed in the 6 months to 31 December 2019 with majority on a 5 year lease term
Specialty Lease Expiry (% of Specialty Gross Rent)
LONG TERM LEASES TO WOOLWORTHS,COLES AND WESFARMERS
5.5%
12.0% 10.9% 10.0% 9.1%7.2%
4.5% 4.2%7.3%
29.3%
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29and
Beyond
10.6%
17.8% 18.1%16.4%
14.4%
10.8%
4.4% 3.8%2.1% 1.6%
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29and
beyond
SCA (Including VCX) Overall Lease Expiry (% of Gross Rent)
Overall Lease Expiry (% of Gross Rent)
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ANCHOR TENANTS
30
30 June 2016 30 June 2017 30 June 2018 30 June 2019 31 Dec 2019Woolworths LimitedWoolworths 53 54 54 58 59Big W 8 7 7 9 9Dan Murphy's 3 2 2 4 4Masters 1 - - - -Countdown - - - - -Total Woolworths Limited 65 63 63 71 72
Coles Group LimitedColes Group Limited - - - 28 28Total Coles Group Limited - - - 28 28
Wesfarmers LimitedColes 12 18 20 - -Target 3 2 2 2 2Kmart 2 2 2 4 4Bunnings - 1 1 1 1Total Wesfarmers Limited 17 23 25 7 7
Other Anchor TenantsAldi 1 1 1 1 2Farmer Jacks - - - 1 1Grand Cinemas - - - 1 1Total Other Anchor Tenants 1 1 1 3 4
Total Anchor Tenants 83 87 89 109 111
• All of our centres are currently anchored by either Woolworths Limited, Coles Group Limited or Wesfarmers Limited retailers
• We are gradually increasing our relative exposure to Coles and Wesfarmers via acquisitions and divestments. Coles now represents 25% and Wesfarmers represents 6% of our anchor tenants
• Woolworths has announced the separation and potential demerger of Endeavour Group. We have 4 Dan Murphy’s and 25 BWS stores accounting for 1.6% of our total gross rent
• Big W lease expiry dates: – FY22: Ballarat (plus 4 x 5 year options)– FY26-FY29: Lavington, Pakenham, Murray Bridge– FY34-FY37: Central Highlands, Kwinana, Warnbro, Mt
Gambier, Lilydale
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FY19 ACQUISITIONS – KEY METRICSSales growth, turnover rent, portfolio occupancy, WALE
Sales MAT Growth Existing Centres FY19 Acquisitions Total Portfolio
Supermarkets 3.5% (1.1)% 2.6%
DDS 4.1% 2.2% 3.4%
Mini-majors (0.2)% (3.4)% (1.0)%
Specialty 2.7% 1.3% 2.3%
Total 3.3% (0.3)% 2.6%
Turnover Rent Existing Centres FY19 Acquisitions Total Portfolio
# anchors 23 11 34
$ $0.9m $0.2m $1.1m
Portfolio Occupancy Existing Centres FY19 Acquisitions Total Portfolio
Portfolio occupancy (%) 98.5% 97.7% 98.3%
Specialty vacancy (%) 4.4% 6.0% 4.8%
WALE (by GLA) Existing Centres FY19 Acquisitions Total Portfolio
Portfolio 8.1 5.8 7.6
Anchor 10.6 7.5 9.9
Existing Centres:
• Continue to perform strongly
• MAT Sales growth of 3.3% (June 2019: 2.6%), including 3.5% for supermarkets (June 2019: 2.7%)
• Specialty vacancy reduced to 4.4% (June 2019: 4.7%)
Acquired Centres:
• We have owned the centres acquired from Vicinity for fifteen months. Remixing strategies in relation to these centres will be substantially completed by June 2020
• MAT Sales improved to (0.3)% (June 2019: (0.9)%)
• Specialty vacancy reduced to 6.0% (June 2019: 7.3%)
• Performance continues to be in line with our expectations
31
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Specialty key metrics
Existing Centres:
• Tenant metrics improving vs June 2019 with improvements in sales MAT, occupancy cost and sales productivity
• Renewal spreads lower at 0.1% (June 2019: 5.3%) reflecting strategy to maintain retention rate against a backdrop of a softening in the broader retail market
• New lease spreads lower at (6.0)% (June 2019: 2.4%) and incentives higher at 16.5 months (June 2019: 11.1 months) reflecting strategy to reduce specialty vacancy by doing a significantly increased volume of deals on difficult long term vacancies. 59 deals completed in six month period, compared to 66 deals for the 12 months to June 2019
Acquired Centres:
• Tenant metrics improving vs June 2019, with improvements in sales MAT (1.3% vs 0.0% in June 2019), occupancy cost (11.0% vs 11.8% in June 2019) and sales productivity ($8,396 psm vs $8,179 psm in June 2019)
• Renewal spreads improved to (4.8)% (June 2019: (14.6)%), new lease spreads were 1.5% (June 2019: 10.6%) and incentives were higher at 14.5 months (June 2019: 10.8 months)
• Remixing will be substantially completed by 30 June 2020, after which these centres will be “business as usual”
– Portfolio NOI is expected to be in line with acquisition NOI by FY21
Spec Tenant Metrics Existing Centres FY19 Acquisitions Total PortfolioComparable sales MAT growth (%) 1 2.7% 1.3% 2.3%
Average Spec Occupancy Cost 9.3% 11.0% 9.8%
Average Gross Rent $PSM 1 $731 $869 $772
Sales Productivity $PSM 1 $8,019 $8,396 $8,134
Renewals Existing Centres FY19 Acquisitions Total PortfolioNumber 104 31 135Retention (%) 81% 72% 78%GLA (sqm) 15,368 3,766 19,134Average uplift (%) 0.1% (4.8)% (1.7)%Incentive (months) 0.4 0.1 0.3
New Leases Existing Centres FY19 Acquisitions Total PortfolioNumber 59 27 86GLA (sqm) 8,086 4,154 12,240Average Uplift (%) (6.0)% 1.5% (3.9)%Incentive (months) 16.5 14.5 15.9
FY19 ACQUISITIONS – KEY METRICS
1. Sales growth, occupancy cost and sales productivity metrics only include sales reporting tenants trading over 24 months
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DEBT FACILITIES & INTEREST RATE HEDGING
DEBT FACILITIESAs at 31 Dec 2019
INTEREST RATE FIXED /
HEDGING PROFILE
1. Bank guarantees of $11.0m are for the Group’s compliance with its Australian Financial Services Licences2. USPP 2014 denominated repayment obligations have been fully hedged at A$ / US$ rate of 0.93873. USPP 2018 denominated repayment obligations have been fully hedged at A$ / US$ rate of 0.76044. The Group has two A$MTN issues. The first A$MTN (expiry April 2021) has a face value of $225.0m and coupon of 3.75%. The second A$MTN (expiry
June 2024) has a face value of $225.0m and a coupon of 3.90%5. Drawn debt (net of cash) of $1,150.3m is made up of: statutory debt of $1,222.2m less $69.7m being the revaluation of the USPP US$ denominated debt
from statutory value of $426.8m (using the prevailing December 2019 spot exchange rate) to restate the USPP to its hedged value of A$357.1m plus unamortised debt fees and MTN discount of $1.6m less $3.8m cash
33
Hed
ge ra
te %
Balance made up of: $225m MTN (expiry Jun ’24 ) and $300m IRS (expiry Jul ’25 / Jul’26 / Jul’ 27)
Due to expiry of $225m MTN in April (coupon 3.75%) decrease in fixed average cost from 2.88% to 2.50%
Facility Limit Drawn Debt Financing capacity Maturity / Notes$m (A$m) (A$m) (A$m)Bank FacilitiesBank bilateral 275.0 122.0 153.0 FY 2023 (refer below & note 1)Bank bilateral 25.0 25.0 0.0 FY 2024Bank bilateral non-revolv ing 50.0 50.0 - FY 2024Syndicated non-revolv ing 100.0 100.0 - FY 2026
450.0 297.0 153.0Medium Term NotesMedium Term Note (#1) 4 225.0 225.0 - Apr 2021
Medium Term Note (#2) 4 225.0 225.0 - Jun 2024450.0 450.0 -
US Private PlacementUS$ denominated2 106.5 106.5 - Aug 2027
US$ denominated3 39.4 39.4 - Sep 2028
US$ denominated2 53.3 53.3 - Aug 2029A$ denominated 50.0 50.0 - Aug 2029
US$ denominated3 92.1 92.1 - Sep 2031
US$ denominated3 65.8 65.8 - Sep 2033407.1 407.1 -
Total unsecured financing facililties 1,307.1 1,154.1 153.0Add: cash - 3.8 3.8
Net debt5 1,307.1 1,150.3 156.8Less: Debt facilities used for bank guarantees1 (11.0) Mar 2023; facility used for bank guarantees (refer note 1)Total debt facilities available plus cash 145.8 Net financing capacity of $145.8m
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ACQUISITIONS AND PENDING DIVESTMENTS DURING THE PERIOD Six months to 31 December 2019
34
Centre Type AcquisitionDate
Anchor GLA (sqm)
Specialty GLA (sqm)
Total GLA (sqm)
% GLACommitted
Total Purchase
Price($m)
Implied Fully Let
Yield
Acquired Properties
Warner Marketplace Neighbourhood Dec 2019 6,164 5,306 11,470 96% 78.4 5.92%
Centre Type DivestmentDate
Anchor GLA (sqm)
Specialty GLA (sqm)
Total GLA (sqm)
% GLACommitted
Total Sale Price($m)
Divestment Cap Rate
Assets held for sale
Cowes Neighbourhood Feb 2020 3,495 1,325 4,820 98% 21.5 6.85%
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PORTFOLIO LIST (I)Property State Property Type Anchor Tenant(s)
Completion Date
Total GLA (sqm)
Occupancy(% by GLA)
Number of Specialties
WALE (Years by GLA)
Valuation Cap Rate
Valuation Dec 2019
(A$m)Lavington Square NSW Sub Regional WOW; Big W 2005 20,233 96% 57 4.5 7.50% 58.0Sturt Mall NSW Sub Regional Coles; KMart 2011 15,326 98% 49 3.5 6.50% 76.8West End Plaza NSW Sub Regional Coles; KMart 2009 15,876 100% 44 1.6 6.75% 68.1Lilydale VIC Sub Regional WOW; Big W; Aldi 2013 21,737 100% 59 10.4 6.00% 116.5Pakenham VIC Sub Regional WOW; Big W 2011 16,925 99% 44 6.3 6.25% 89.6Central Highlands QLD Sub Regional WOW; Big W 2012 18,049 99% 33 10.1 7.50% 64.7Mt Gambier SA Sub Regional WOW; Big W; Bunnings 2012 27,573 99% 35 11.3 6.47% 73.4Murray Bridge SA Sub Regional WOW; Big W 2011 18,771 98% 54 6.3 7.50% 64.0Kwinana Marketplace WA Sub Regional Coles; WOW; Big W; Dan Murphy's 2012 32,945 99% 77 10.3 6.75% 140.0Warnbro WA Sub Regional Coles; WOW; Big W 2014 21,433 97% 64 8.1 7.00% 97.0Belmont Central NSW Neighbourhood WOW 2008 7,868 96% 21 7.2 7.04% 31.2Berala NSW Neighbourhood WOW 2012 4,013 100% 6 12.2 5.50% 28.8Cabarita NSW Neighbourhood WOW 2013 3,426 100% 11 10.8 6.25% 22.5Cardiff NSW Neighbourhood WOW 2010 5,848 100% 14 12.3 6.25% 26.2Clemton Park NSW Neighbourhood Coles 2017 7,020 98% 22 11.9 6.00% 52.1Goonellabah NSW Neighbourhood WOW 2012 5,115 98% 9 10.5 6.75% 20.5Greystanes NSW Neighbourhood WOW 2014 6,005 100% 28 10.2 5.75% 61.0Griffin Plaza NSW Neighbourhood Coles 1997 7,227 99% 30 4.5 6.75% 26.8Lane Cove NSW Neighbourhood WOW 2009 6,721 98% 13 10.2 5.75% 58.8Leura NSW Neighbourhood WOW 2011 2,546 100% 6 11.7 5.75% 19.0Lismore NSW Neighbourhood WOW 2015 6,836 92% 24 10.9 7.25% 30.5Macksville NSW Neighbourhood WOW 2010 3,446 100% 5 13.2 5.75% 14.8Merimbula NSW Neighbourhood WOW 2010 5,012 100% 9 11.3 6.50% 19.4Morisset NSW Neighbourhood WOW 2010 4,137 100% 8 7.1 6.75% 18.9Muswellbrook Fair NSW Neighbourhood Coles 2015 9,007 99% 22 3.8 6.50% 31.9North Orange NSW Neighbourhood WOW 2011 4,844 100% 14 12.6 6.25% 33.9Northgate NSW Neighbourhood Coles 2014 4,126 100% 13 3.4 6.50% 16.8Shell Cove NSW Neighbourhood WOW 2018 4,881 95% 8 16.4 6.25% 31.4Ulladulla NSW Neighbourhood WOW 2012 5,281 97% 10 13.3 6.00% 25.7West Dubbo NSW Neighbourhood WOW 2010 4,205 100% 10 10 6.25% 19.3Albury VIC Neighbourhood WOW 2011 4,952 100% 13 11.2 6.50% 24.4Ballarat VIC Neighbourhood Dan Murphy's; Big W 2000 8,963 100% 4 1.9 7.00% 18.1Bentons Square VIC Neighbourhood WOW; Dan Murphy's 2009 9,996 100% 43 6.5 6.25% 81.0Drouin VIC Neighbourhood WOW 2008 3,779 100% 4 8 5.75% 17.1Epping North VIC Neighbourhood WOW 2011 5,258 100% 16 10.8 5.75% 30.9Highett VIC Neighbourhood WOW 2013 5,476 99% 13 12.3 5.50% 30.6Langwarrin VIC Neighbourhood WOW 2004 5,094 100% 15 4.3 5.75% 26.0Ocean Grove VIC Neighbourhood WOW 2004 6,911 97% 20 4.1 6.25% 36.5The Gateway VIC Neighbourhood Coles 2012 10,844 99% 41 4.4 6.25% 52.9Warrnambool East VIC Neighbourhood WOW 2011 4,319 100% 6 7.3 6.25% 16.1Wonthaggi VIC Neighbourhood Coles; Target 2012 11,831 99% 23 6.1 6.75% 45.5Wyndham Vale VIC Neighbourhood WOW 2009 6,650 100% 9 9.3 5.75% 23.6
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Property State Property Type Anchor Tenant(s)Completion
DateTotal GLA
(sqm) Occupancy(% by GLA)
Number of Specialties
WALE (Years by GLA)
Valuation Cap Rate
Valuation Dec 2019
(A$m)Annandale Central QLD Neighbourhood Coles 2007 6,655 100% 20 5.3 7.50% 27.0 Ayr QLD Neighbourhood Coles 2000 5,455 98% 8 5.3 7.00% 18.7 Brookwater Village QLD Neighbourhood WOW; 2013 6,755 100% 11 9.2 6.25% 36.6 Bushland Beach QLD Neighbourhood Coles 2018 4,571 99% 9 10.6 6.75% 23.3 Carrara QLD Neighbourhood WOW 2011 3,717 94% 6 8.0 6.50% 18.0 Chancellor Park QLD Neighbourhood WOW 2001 5,859 100% 18 12.5 6.00% 46.0 Collingwood Park QLD Neighbourhood WOW 2009 4,567 100% 10 12.3 6.50% 12.0 Coorparoo QLD Neighbourhood WOW 2012 5,618 99% 14 11.4 5.75% 38.0 Gladstone QLD Neighbourhood WOW 2012 5,215 100% 12 9.8 7.00% 25.1 Greenbank QLD Neighbourhood WOW 2008 5,696 100% 16 7.5 6.25% 22.4 Jimboomba Junction QLD Neighbourhood Coles 2008 5,934 97% 21 3.6 6.50% 28.5 Lillybrook Shopping Village QLD Neighbourhood Coles 2004 6,996 98% 21 6.8 6.00% 30.5 Mackay QLD Neighbourhood WOW 2012 4,167 100% 8 11.4 6.75% 25.9 Marian Town Centre QLD Neighbourhood WOW 2014 6,707 96% 19 9.1 7.00% 32.7 Miami One QLD Neighbourhood Coles 2007 4,676 97% 35 4.4 6.50% 32.1 Mission Beach QLD Neighbourhood WOW 2008 3,904 96% 8 7.1 6.50% 12.5 Mt Warren Park QLD Neighbourhood Coles 2005 3,842 97% 11 8.5 6.00% 18.3 Mudgeeraba Market QLD Neighbourhood WOW 2008 6,142 98% 39 6.5 6.25% 35.5 North Shore Village QLD Neighbourhood Coles 2003 4,072 99% 14 6.7 6.00% 27.8 Oxenford QLD Neighbourhood WOW 2001 5,815 100% 15 6.2 6.00% 33.5 Sugarworld Shopping Centre QLD Neighbourhood Coles 2015 4,759 90% 12 11.1 6.75% 25.4 The Markets QLD Neighbourhood Coles 2002 5,253 89% 22 1.6 7.25% 29.3 Warner QLD Neighbourhood WOW; Aldi 2001 11,470 97% 44 9.8 5.75% 78.4 Whitsunday QLD Neighbourhood Coles 1986 7,660 93% 34 4.9 7.50% 35.5 Worongary Town Centre QLD Neighbourhood Coles 2004 6,898 98% 43 3.6 6.00% 48.0 Blakes Crossing SA Neighbourhood WOW 2011 5,078 100% 13 7.1 6.75% 21.8 Walkerville SA Neighbourhood WOW 2013 5,263 98% 13 11.8 6.00% 25.6 Busselton WA Neighbourhood WOW 2012 5,432 99% 5 12.8 6.00% 26.9
Currambine Central WA Neighbourhood WOW; Dan Murphy's; Farmer Jacks; Grand Cinemas 2016 17,031 98% 41 6.9 6.75% 90.7
Kalamunda Central WA Neighbourhood Coles 2002 8,352 99% 39 4.1 6.00% 43.1 Stirlings Central WA Neighbourhood WOW 2013 8,446 94% 35 7.5 7.00% 42.1 Treendale WA Neighbourhood WOW 2012 7,319 98% 19 5.5 6.50% 31.8 Burnie TAS Neighbourhood Coles; KMart 2006 8,572 100% 10 6.1 7.50% 22.4 Claremont Plaza TAS Neighbourhood WOW 2014 8,046 100% 25 7.7 6.50% 38.8 Glenorchy Central TAS Neighbourhood WOW 2007 7,090 100% 14 5.0 6.75% 27.5 Greenpoint TAS Neighbourhood WOW 2007 5,955 90% 11 2.9 7.25% 17.2 Kingston TAS Neighbourhood Coles 2008 4,963 100% 16 6.7 6.30% 30.8 Meadow Mews TAS Neighbourhood Coles 2003 7,670 100% 31 5.0 6.50% 63.0 New Town Plaza TAS Neighbourhood Coles; KMart 2002 11,381 100% 12 1.6 6.50% 42.9 Prospect Vale TAS Neighbourhood WOW 1996 6,048 100% 18 10.7 6.75% 29.1 Riverside TAS Neighbourhood WOW 1986 3,107 100% 7 1.7 7.50% 8.0 Shoreline TAS Neighbourhood WOW 2001 6,285 100% 18 2.0 6.25% 39.3 Sorell TAS Neighbourhood Coles 2010 5,450 100% 14 8.0 6.25% 30.5
PORTFOLIO LIST (II)
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PORTFOLIO LIST (III)
37
Property State Property Type Anchor Tenant(s) Completion DateTotal GLA
(sqm) Occupancy(% by GLA)
Number of Specialties
WALE (Years by
GLA)Valuation Cap Rate
Valuation Dec 2019
(A$m)
Properties Under Management - SURF 2Katoomba Marketplace NSW Freestanding WOW; Big W 2014 9,719 100% - 15.8 6.50% 47.0 Mittagong Village NSW Neighbourhood Dan Murphy's 2007 2,235 96% 4 9.7 7.00% 9.6
Properties Under Management - SURF 3Moama Marketplace NSW Neighbourhood WOW 2007 4,518 99% 7 12.9 7.00% 14.4 Swansea NSW Neighbourhood WOW 2012 3,677 97% 4 14.1 6.00% 15.6 Warrnambool Target VIC Neighbourhood Target 1990 6,983 98% 11 4.2 9.00% 15.0 Woodford QLD Neighbourhood WOW 2010 3,672 100% 5 6.8 6.25% 13.4
slide
Disclaimer
This presentation has been prepared by Shopping Centres Australasia Property Group RE Limited (ABN 47 158 809 851) (SCPRE) as responsible entity of Shopping Centres Australasia Property Management Trust (ARSN 160 612 626) (SCA Management Trust) and responsible entity of Shopping Centres Australasia Property Retail Trust (ARSN 160 612 788) (SCA Management Trust) (together, SCA Property Group or the Group). This presentation should be read in conjunction with the Financial Report published on the same date.
Information contained in this presentation is current as at the date of release. This presentation is provided for information purposes only and has been prepared without taking account of any particular reader's financial situation, objectives or needs. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Accordingly, readers should, before acting on any information in this presentation, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assistance of their financial or other licensed professional adviser before making any investment decision.
This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, nor does it form the basis of any contract or commitment. Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation.
The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Group. In particular, they speak only as of the date of these materials, they assume the success of the Group’s business strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements. Past performance is not a reliable indicator of future performance.
By reading this presentation and to the extent permitted by law, the reader releases each entity in the Group and its affiliates, and any of their respective directors, officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any reader relying on anything contained in or omitted from this presentation.
The Group, or persons associated with it, may have an interest in the securities mentioned in this presentation, and may earn fees as a result of transactions described in this presentation or transactions in securities in SCP. All values are expressed in Australian dollars unless otherwise indicated. All references to “units” are to a stapled SCP security comprising one unit in the SCA Retail Trust and one unit in the SCA Management Trust.
Anthony MellowesChief Executive Officer T: +61 2 8243 4900E: [email protected]
Mark FlemingChief Financial Officer T: +61 2 8243 4900E: [email protected]
For further information please contact:
CONTACT DETAILS AND DISCLAIMER
This document has been authorised to be given to the ASX by the Board of SCP.